House prices in Donegal rise by 11 per cent

HOUSE prices in Donegal have risen 11 per cent in the second quarter of this year.

That’s according to the latest Daft.ie report published yesterday morning, which highlights that in Donegal prices in the second quarter (April to June) were 11 per cent higher than a year previously, compared to a rise of two per cent seen a year ago.

The average price of a home is now €228,000, 14 per cent below its Celtic Tiger peak.

Nationally, housing prices rose by an average of 3.8 per cent in the second quarter of 2024, according to the latest Daft.ie House Price Report released yesterday by Ireland’s largest property website, Daft.ie.

The typical listed price nationwide in the second quarter of 2024 was €340,398, 6.7 per cent per cent higher than in the same period a year earlier and 35 per cent higher than at the onset of the Covid-19 pandemic.

While the increase in the second quarter was broadly based, there remain notable differences in price trends across the country.

In Dublin, prices in the second quarter of the year were 4.7 per cent higher than a year previously, while in Cork and Waterford cities, the increase was closer to 10 per cent.

In Galway and Limerick cities, prices were more than 12 per cent higher year-on-year.

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said: “Over the past twenty years, a clear pattern has emerged in both sale and rental markets: when availability is tight, prices are pushed upwards.

“Availability in the sales market has been consistently tight since the start of the year and thus it is not surprising that prices nationally recorded their largest three-month increase since 2020. In part, tight availability of second-hand homes reflects the impact of significant interest rate increases.

“As rates come down again, and in particular as sitting homeowners come off fixed-rate mortgages, supply should improve. This, however, is likely to take time and thus tight conditions may continue for some time.”

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